REPORT TO EXECUTIVE Procurement of Capital Accounting Software

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REPORT TO EXECUTIVE Procurement of Capital Accounting Software Powered By Docstoc
					                                                                                        ITEM NO

                                         REPORT TO EXECUTIVE

                                    DATE                          23rd September 2008
                                    PORTFOLIO                     Resources
                                    REPORT AUTHOR                 Diane Wintle
                                    TEL NO                        01282 425011 x2219

                         Procurement of Capital Accounting Software


1.   To seek budgetary approval of £20,700 to enable the procurement of essential capital
     accounting software,

2.   To inform members of the reasons behind the need to procure the software.

3.   Inform members of the selection of the software provider.


4.   The Executive is recommended to:

             a)    Recommend Full Council to establish a budget of £20,700 within the Capital
                   Programme for the current year in order to finance the procurement of capital
                   accounting software, and reduce the existing budget provision for Office
                   Accommodation by an equivalent amount.

             b)    Approve the waiving of standing orders SOC14 and SOC15 for contracts
                   relating to contracts valued at between £15,000 and £50,000 to enable the work
                   to proceed.


5.   The software is required to enable the authority to meet the requirements of the
     Chartered Institute of Public Finance and Accountancy (CiPFA) Statement of
     Recommended Practice (SORP) for 2008/09 and beyond. In order to achieve this it
     will be necessary for the software to be in operation before the end of the current
     financial year.

6.   There are not sufficient suppliers of software to the specification required to be able to

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      comply with the requirements of Standing Orders for Contracts.


7.    The Need for Capital Accounting Software
      Recent changes in the Capital Accounting requirements of the CiPFA SORP have led to a
      marked increase in both the complexity and volume of accounting transactions.
      In order that the authority may continue to meet these increasingly onerous requirements,
      it is necessary to acquire specialist software. Failure to do so would seriously jeopardise
      our ability to comply with the SORP and may result in a qualification of our accounts by the
      External Auditor. This would have a detrimental impact on our overall financial standing as
      measured by the Use of Resources assessment.

8.    Real Asset Management
      After careful consideration and detailed discussions, Real Asset Management (RAM) has
      been selected as the preferred supplier of this software. RAM is a full Civica business
      partner and provides the only capital accounting system that integrates into our Financial
      Suite. They are able to provide a swift implementation of the system, which is essential to
      enable us to meet the SORP requirements for the production of the Authority’s 2008/09
      accounts on time. The cost of acquisition that has been negotiated with the supplier is

9.    Other suppliers have been considered and officers have attended a demonstration of an
      alternative system, but this was discounted due to implementation issues and uncertainties
      surrounding cost. The software is required in order to complete the final accounts for
      2008/09 and must therefore be operational before the end of the current financial year. It
      was not clear that this supplier could meet the implementation timetable required.

10.   It should also be noted that due to the emergent market in this area and the need for swift
      implementation, it has not been possible for officers to obtain a range of quotations as
      required by Standing Orders for Contracts valued between £15,000 and £50,000.

11.   There is currently no budget provision for the £20,700 of capital resources that is required
      for this project. Officers have carried out a thorough examination of the revenue budget for
      the Finance Unit and identified an equivalent amount of revenue savings (principally salary
      savings resulting from maternity leave) that could be diverted for this purpose.

12.   However, following discussions with the Director of Resources a different course of action
      is proposed. There is continuing pressure on the revenue budget and it is important that
      revenue resources are preserved wherever possible. This project forms part of the
      Council’s asset management activities and should be financed if possible from the capital
      resources that have already been allocated in the Capital Programme for this work. As has
      already been reported to the Executive in May, it will not be possible to proceed with the
      Office Accommodation Project as quickly as had been envisaged and this budget will not
      therefore be required in full this year. Resources can therefore be transferred from this


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13.   As shown in the body of the report. There will also be an ongoing revenue requirement of
      £2,500 per annum to pay for the licence. This can be found from within the existing
      revenue budget.


14.   There are no specific policy implications.


15.   None


16.   Files held in Finance Unit

PLEASE CONTACT:                                            Diane Wintle- Principal Accountant
ALSO:                                                      Phil Moore – Head of Finance

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